CGS profit falls 8% to SAR 8.5M in Q1 2026/27

The company attributed the year-on-year (YoY) decline in quarterly profit to a 3.5% drop in gross profit to SAR 20.8 million, from SAR 21.6 million, while the gross margin fell to 18.8% from 24.5% due to a shift in the revenue mix toward the cooling segment, whose contribution rose to 44% of total revenue from 21%. This came despite a 25.8% increase in revenue to SAR 111 million, driven by strong performance across most business segments. Cooling revenue jumped 165.8% to SAR 48.7 million, while customized solutions revenue rose 18.5% to SAR 17.1 million and after-sales services revenue grew 8.6% to SAR 10.5 million. Refrigerated transport revenue fell 24.1% to SAR 34.8 million amid supply-chain challenges and more cautious customer investment decisions due to regional geopolitical developments.

Compared with the previous quarter, Q1 2026/27 profit retreated 38% from SAR 13.6 million in Q4 2025/26.

Revenue fell 21.8% to SAR 111 million, mainly due to weaker refrigerated transport activity and lower customized solutions revenue because of project execution and revenue recognition timing. Refrigerated transport revenue declined 46.8% and customized solutions revenue fell 50.1%, partly offset by a 48.6% increase in cooling revenue to SAR 48.7 million as backlogged orders were converted into recognized revenue, while after-sales revenue rose 9.3% to SAR 10.5 million. Gross profit declined 29.9% to SAR 20.8 million from SAR 29.7 million, with the gross margin narrowing to 18.8% from 20.9% due to the higher contribution of the lower-margin cooling segment.

Total shareholders’ equity, no minority interests, reached SAR 207.29 million as of June 30, 2026, up from SAR 161.94 million a year earlier.

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